The dollar index (DXY00) Friday fell by -0.24% and posted a 3-week low. The dollar retreated Friday after the US Jun payroll report bolstered expectations for the Fed to cut interest rates this year. Also, strength in the British pound (^GBPUSD) weighed on the dollar after a landslide victory by the UK Labour Party in Wednesday’s general election boosted the pound to a 3-week high. Losses in the dollar were contained due to hawkish comments from New York Fed President Williams who said we still” have a way to go” to reach our 2% inflation target on a sustained basis.
US Jun nonfarm payrolls rose +206,000, stronger than expectations of +190,000. However, May nonfarm payrolls were revised down to +218,000 from the previously reported +272,000. Also, the Jun unemployment rate unexpectedly rose +0.1 to a 2-1/2 year high of 4.1%, showing a weaker labor market than expectations of no change at 4.0%.
